After a period of prolonged consolidation, XRP’s price action is showing bullish signs, with technical indicators suggesting further upside. Analysts from Singapore-based blockchain firm Matrixport highlight favorable conditions for a potential price rally, with additional momentum potentially coming from regulatory developments.
Technical Indicators Support Bullish Momentum
According to Matrixport, XRP’s Relative Strength Index (RSI) is hovering around 40%, which historically has been a precursor to price surges. The firm noted that XRP has previously rallied when RSI is near this level, typically facing resistance closer to 70%.
In a statement, Matrixport analysts said:
“The recent rebound could have further upside, particularly if the SEC revisits its legal case against Ripple Labs under the new U.S. administration. With the RSI currently near 40%, the technical setup appears favorable for a potential rally.”
Market Data Shows Traders Adjusting Positions
Despite XRP’s bullish setup, market data from Coinalyze indicates a 3.5% drop in open interest for XRP’s perpetual and futures contracts, now sitting at $1.8 billion. This suggests that some traders are either locking in profits or reducing leveraged positions to manage risk.
However, if open interest starts increasing again alongside price gains, it could confirm a strengthening bullish trend.
Exchange Open Interest Rankings
- Bybit leads with $783 million in XRP open interest.
- Binance follows closely with $724 million.
Regulatory Developments Could Fuel Further Gains
Beyond technical indicators, regulatory clarity could play a key role in XRP’s next move. The U.S. Securities and Exchange Commission (SEC) has officially acknowledged Grayscale’s filing for a spot XRP ETF, marking the beginning of the review process. If approved, this could bring institutional investment into the XRP market, further strengthening its long-term outlook.
Several other firms, including Bitwise, 21Shares, Canary Capital, and WisdomTree, have also submitted spot XRP ETF proposals, awaiting further SEC review.
Current Price Action
At the time of writing, XRP is trading at $2.59, down 2.76%. While the short-term price movement remains volatile, the combination of strong technical patterns, reduced speculative trading, and potential regulatory advancements suggests that XRP could be setting up for a larger breakout in the coming weeks.
